New Opportunities for Middle Market Growth

Middle market companies have faced many challenges to growth, but the tide is now turning. Previously, we had observed the dumbbell effect, where at either end of the spectrum massive corporations and small businesses flourished while middle market companies were caught in between. Unlike large multinational corporations, many middle market companies cannot leverage the same economies of scale to deal with price cuts, consolidation, and regulatory challenges. On the other hand, middle market companies do not have the same flexibility as startups to move swiftly in the market.

The Dumbbell Effect: Massive corporations and small businesses flourish at either end of the spectrum, while the middle market is squeezed in between.

Growth Through Strategic Acquisitions

Divestments by large corporations can generate opportunities for middle market companies looking to grow rapidly through M&A. With acquisition, middle market companies have the opportunity to quickly execute their growth strategy, whether it’s by adding a new product or service, acquiring a competitor, or expanding into a new geographic or vertical market. Overall, middle market M&A has remained relatively stable when compared to global values, suggesting that although mega-deals may be slowing down, smaller, strategic acquisitions are still being executed. Now is the time to carefully consider your opportunities and execute your growth strategy.

David Braun

David Braun is the founder and CEO of Capstone Strategic and author of Successful Acquisitions: A Proven Plan for Growth. His specialty is helping companies grow through acquisition.

Through consistent focus on this one specialty, David has built up a formidable expertise that has led to an acquisition success rate way beyond the industry average.

David Braun is a sought-after educator who has been teaching senior executives and financial professionals for over 21 years. His live seminars and online webinars are in high demand, and his blog is widely read by M&A professionals, business owners and all who wish to understand the dynamics of growth through company acquisition.